California State Budget Crisis Temporarily Halts CALHFA Programs!
Who the heck is CALHFA.. you might ask!
For over 30 years, California Housing Finance Agency (CalHFA) has supported the needs of renters and first-time homebuyers by providing financing and programs that create safe, decent and affordable housing opportunities for individuals within specified income ranges. Established in 1975, CalHFA was chartered as the State's affordable housing bank to make low interest rate loans through the sale of tax-exempt bonds. A completely self-supporting State agency, bonds are repaid by revenues generated through mortgage loans, not taxpayer dollars.
Effective immediately, CalHFA is suspending the following active CalHFA First Mortgage Fixed Rate Loan Programs and Down Payment Assistance Programs:
•· 30-Year Fixed Mortgage products, including: Moderate Income, Low Income ,Nonprofits & Affordable Housing Partnership Program (AHPP), Extra Credit Teacher Program (ECTP)
•· California Homebuyer's Down Payment Assistance Program (CHDAP)
•· Extra Credit Teacher Program (ECTP)
•· School Facility Fee Down Payment Assistance Program (SFF)
These programs are being temporarily suspended as a result of the action taken by the Pooled Money Investment Board (PMIB) on December 17, 2008. The PMIB loans money to state agencies to advance program funds which will later be repaid through bond issuances. CalHFA uses a PMIB loan to initially fund its Conventional 30-Year Fixed Mortgage and down payment assistance programs.
The recent PMIB action froze all such PMIB loans. It is anticipated that this situation will continue until the State's budget crisis is resolved.
The PMIB will meet again in early January, 2009. At that time, they may receive information as to when these programs will be restored.
Of course this notice comes out after 5pm on Friday so there is no way for me to find out if loans currently in process are exempt from this freeze. I would imagine they will be frozen as well, but I have not confirmed this. For borrowers sake I sure hope not!
Will keep you posted!
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